Buy Crompton, Chambal Fert: sell Federal Bank: Mukadam

In CNBC-TV18's popular show Bull's Eye, Shahina Mukadam of Varun Capital shares her trading strategies for the day.

One may sell Federal Bank with a target of Rs 394.80 and stop loss at Rs 407. This is one private sector bank which is expected to report a decline in profits both on Y-o-Y basis as well as sequential basis. Profits are estimated to be almost 20 percent lower for this quarter. Also net interest income is expected to remain flattish. I expect the stock to remain weak and for the day I give a trading sell with a target of Rs 394.80.
One can buy Crompton Greaves with a target of Rs 93 and stop loss of Rs 86.50. The company is expected to report better numbers in 2014 compared to 2013. Last year was not a good year for the company given that it was restructuring its international operations. There is buying interest coming back in the sector especially engineering sector and I do believe Crompton Greaves stock should bottom out from current levels for the medium term.
One may buy Chambal Fertilisers and Chemicals with a target of Rs 39. The company is a major producer of fertilizer both urea as well as potash. It did not have a good last six months where imported cost of raw materials have shot up both because of the depreciation of the rupee as well as high crude oil prices. Now the government is open to increasing prices of urea and I believe that this would be a big positive for the company going forward. I buy it with a target of Rs 39 for the day.
One may buy Idea Cellular with a target of Rs 145. In the last two months this stock has been consolidating at around the current levels. I expect the first quarter numbers to be pretty good for the company. As we saw in the fourth quarter last year I think the stock should start showing some momentum going forward. I would buy it with a day target of Rs 145.